Cement companies are rushing to acquire land for gypsum mining in the counties as a new company is set to start operation in Athi River.
The companies, due to heighten competition and demand for gypsum and limestone, are offering up to Sh100, 000 per month to lease a five acre piece of land in the counties of Machakos, Kajiado and Kitui which have large deposits of limestone and gypsum.
The minerals are key ingredients in the manufacture of cement. With the entry of two cement manufacturing companies, National Cement and Mombasa Cement demand for gypsum and limestone has tripled. Gypsum is also found in Garissa district of North Eastern Province. The manufacturers have already poured billions of shillings worth of investment in Athi River and the search for raw materials has gone up.
Isinya District Commissioner, Hassan Ali Bulle, yesterday said more mines have been established in Konza, Ngirgir, Oltoroto, Lasiit and Koromboi. Bulle said land owners in those areas of the district are upbeat that the money being offered by cement companies is set to change the lifestyle of the local communities that for years have entirely depended on livestock.
Senteu ole Nakuo, a land owner in Koromboi area of Isinya District, says a piece of five acre plot fetches up to Sh7 million in a lease arrangement and that the figure could go up depending on the demand. East African Portland Cement is the only company that has bought property in limestone mining areas of Kipini in Sultan Hamud.
Red soil, another raw material in the manufacture of cement, is mainly found in Garissa, Machakos area of Lukenya and in Tanzania.
Large deposits of gypsum have already been discovered in Kitui and the Athi River cement companies are already establishing bases there.
With the increased demand for cement locally and abroad, the companies are now putting in more hours for production to be able to meet the rising market demand.
Kenya exports cement to Rwanda, Uganda, SouthSudan, Uganda and Tanzania. In January, analysts at CFC Stanbic projected that 2011 will be a good year for cement manufacturers to grow both regionally and locally. With the separation of South Sudan from the North, the newest state in Africa will have major construction projects to rebuild the country after years of war and conflict. Bamburi Cement Company, one of the leading cement producer with an annual capacity of 2.4 million tonnes, is planning to increase its production base, according to its inside sources.
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